The Significance Of Crude Oil Reserves In Today's World Of Growing Demand For Crude Oil

Geological and engineering data are used to estimate the Crude oil reserves though few uncertainties are involved

. Proved reserves and unproved resources are the two major classifications of Crude oil reserves. Those, which are estimated, to be recoverable with at least ninety percent of certainty are termed as proved resources. Among the industry experts proved resources are identified as P90 or 1P. The sub divisions of these reserves are Proved Developed (PD) and Proved Undeveloped (PUD). Proved Developed or PD reserves are those, which can be produced from the accessible wells or with the help of more reservoirs, and the operating cost is less expensive. In case of Proved Undeveloped (PUD) reserves, huge investment is required to dig new oil wells and to bring the crude oil to the surface of the earth.

In case of Proved reserves, the United States Securities and Exchange Commission gives permission to the oil companies to report to investors. Unproved reserves, the other major classification of Crude oil reserves are estimated as unrecoverable reserves due to various uncertainties such as technical, contractual or regulatory types. Unproved reserves are further sub classified as probable and possible. Probable reserves, which are often referred to as P50 or 2P have a fifty percent chance of being producible. Possible reserves, otherwise well known as P10 or 3P have just 10 percent certainty of being produced.

The various methods for determining Crude oil reserves are classified as volumetric, material balance and production performance. Government agencies and oil companies are most likely to use these unproved reserves for the purpose of planning in future. Half of the total Crude oil reserves in the world are found in the Middle East. From the year 2000, there has been an increase in Crude oil reserves by 31 percent. In the same year worldwide oil reserves accounted for 1.016 trillion barrels. In 2007, United States oil reserves were 21.3 billion barrels. Alaska witnessed the largest raise in Crude oil reserves, which recorded 284 million barrels, and Texas reserves were 251 million barrels.

Saudi Arabia, which is a major oil producer and exporter, has the world's largest Crude oil reserves with an estimate of 264 billion barrels. Venezuela, which is one of the members of OPEC, plays a significant role in the crude oil market. In 2009, the total Crude oil reserves amounted to 172 billion barrels. Proven oil reserves in Iran estimated of 138 billion barrels and 115 billion barrels in Iraq, which holds the world's fourth largest position. According to OPEC, the United Arab Emirates (UAE) proven reserves hold about 98 billion barrels. Nigeria, which is the fifth largest exporter of crude oil to the United States, holds proven reserves, which account for 37 billion barrels. Proven reserves are also found in the rest of the OPEC member countries such as Kuwait, Libya, Algeria and Qatar.

by: Sunil Punjabi

POST COMMENT

Why Women Under 40 Should Be Aware Of Breast Cancer Where to buy a Nebulizer Ski Bulgaria Resorts three Options for Enjoyable in the Balkan Snowfall A Client's Needs Will Determine How Long They Wait Consider The Benefits Of Tower Crane Hire ONCE IN FIVE YEARS 100 Day Challenge How To Do A Tenant Screening The Right Way What are the Benefits of QNUPS? GUJJARS UP IN REVOLT AGAIN IN RAJASTHAN UK Pensions- QNUPS Tea Light Candles-how Citronella Candles Work QNUPS- Choosing The Best